Overview

Bahrain remains true to history, cultural uniqueness while regionally connected
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The name Bahrain means “two seas” in Arabic. It is unclear what two seas the term specifically refers to, and for much of its history, Bahrain was the name for the eastern coast of Arabia. Only recently has it come to identify the islands of the Awal archipelago. HISTORY: The island’s first notable inhabitants were of the Dilmun civilisation, approximately 6000 years ago, but its geographically…

Overview

Bahrain maintains status as financial centre with steady growth, conducive business climate
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The kingdom of Bahrain has thrived as one of the Gulf’s financial centres for decades. Despite increasing competition from emerging financial centres in the region, its advanced regulatory framework, educated workforce and relatively low-cost environment means that it remains an attractive platform for companies engaging with the wider GCC and beyond. The recent decline in oil prices, however,…

Overview

Bahrain combats declining banking sector growth with regulator vigilance
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Bahrain’s banking sector has managed two years of a challenging low oil price environment without seeing significant deterioration in its key financial stability indicators. Both conventional lenders and Islamic financiers operating within the kingdom’s robust regulatory framework have also managed to maintain profitability throughout this period thanks to efficiency drives and continued…

Overview

Several innovations in the pipeline to deepen Bahrain's capital markets
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The region’s exchanges have operated in adverse economic conditions since the decline of oil prices began in the second half of 2014, and the Bahrain Bourse (BHB) is no exception. However, the apparent stabilisation of global oil prices in 2016 has brought a similar firming of the main index and, after a year of shrinking stock prices, some increasingly attractive valuations. The larger…

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Despite increasing competition, Bahrain maintains position as regional leader for Islamic finance
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Bahrain’s sharia-compliant financial institutions enter 2017 after weathering the tumultuous economic environment and changing regulatory landscape of the previous year. Despite the challenges, the kingdom’s Islamic banks continue to expand in the domestic market and beyond, while activity in the newly reinforced sharia-compliant insurance sector is well positioned to continue along a trajectory…

Overview

Regulatory flexibility in Bahrain creates thriving insurance market
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The wide array of local and international insurance companies that operate out of Manama have flourished in a regulatory environment that has allowed them to serve the small domestic market while simultaneously extending their operations regionally. A history of sound prudential oversight has protected them from the series of economic shocks that have created a challenging economic environment…

Overview

Lower oil prices lead to innovation and investment to secure Bahrain's fiscal and energy needs
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Although its revenues from oil and gas have fallen, the government of Bahrain is ploughing new investment into the kingdom’s energy sector in the hopes that the broader economy will reap the benefits in the years to come. This counter-cyclical spending is designed to allow a significant increase in refinery capacity and a more secure supply of fuel for the country’s aluminium smelters,…

Overview

Unlike many of its neighbours, Bahrain witnesses construction project boom
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With a raft of measures aimed at improving infrastructure, industry, housing and connectivity, the government of Bahrain has a $32bn investment strategy to accelerate economic diversification in the kingdom, providing abundant opportunities for the country’s construction sector. Even against a backdrop of falling oil prices that has seen the cancellation or deceleration of infrastructure…

Overview

New supply helps buoy Bahrain's real estate market, defying regional trends
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The kingdom is set to see a number of residential, retail and hospitality properties launched in 2017 as the country’s real estate sector pushes ahead with new developments. The macroeconomic issues affecting the country and its GCC neighbours, as governments in the region trim expenditure in response to the global slump in oil prices, do not appear to have dented the confidence of developers…

Overview

Range of tourism attractions in Bahrain to increase number and type of visitors
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With its long history as a trading centre, its wildlife and its ancient forts and mosques, Bahrain has strong appeal to draw in visitors from near and far. Made up of more than 30 islands, the archipelago is easy access for people living in the Gulf region – making it a prime destination for short stays – and visitors are able to check in to one of the increasing number of four- and five-star…